Aug. 28--John Allison joined BB&T Corp. in 1971, when he was fresh out of UNC Chapel Hill and the company was just a small farm bank in eastern North Carolina.

Now, after 19 years as chief executive, Allison has helped transform the bank into one of the country's largest, buying up 60 competitors and expanding its footprint to 11 states. He's part of the coterie that made North Carolina a banking destination.

Wednesday, he announced it's time to retire, though he'll remain as board chairman through the end of 2009. He plans to spend more time on another love: philosophy.

His retirement, effective Dec. 31, is part of a succession plan in place for years. Even so, Allison said it "comes with a lot of mixed emotions."

"However," he added, "for BB&T and for me personally, this is the right time to move forward. Nearly 20 years is certainly a long time for anyone to serve as CEO."

Allison, who turned 60 two weeks ago, will be replaced by his right-hand man, chief operating officer Kelly King. Both are company lifers with deep ties to North Carolina.

Allison, a Charlotte native, is fond of philosophy -- he quotes Aristotle and gives senior managers a copy of Ayn Rand's free-market manifesto, "Atlas Shrugged."

He's skeptical of big government: In 2006, his bank made headlines when it said it would not lend money for commercial projects on private land seized by eminent domain. The government, Allison said, shouldn't have such vast control over individuals' property rights.

His bank is faring better than most peers. Though earnings are down slightly over the year, Allison has steered clear of subprime mortgages and the complicated financial instruments that supported them. "Esoteric" and "illogical" are how he describes CDOs, SIVs, and other investment tools now haunting many competitors.

But one potential vulnerability, the bank and analysts have said, is its exposure to residential real estate.

BB&T just increased its dividend by a penny and earned $428 million in the second quarter. Though that's down about 6 percent over the year, rival Bank of America saw earnings slide 41 percent in that same period. Wachovia lost $9.1 billion.

"In the annals of North Carolina banking, there are a few legends that stand out, like Hugh McColl and John Forlines," said Tony Plath, a finance professor at UNC Charlotte, referring to the well-known retired CEOs, respectively, of Bank of America and Bank of Granite Corp. "You can put John Allison on that very short list.